Top 2 Financials Stocks That May Fall Off A Cliff This Quarter

As of Nov. 22, 2024, two stocks in the financials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

TowneBank TOWN

• On Oct. 23, Towne Bank reported worse-than-expected third-quarter revenue. “Our third quarter results continued to deliver increased net interest income and noninterest income contributions from our diverse business model which were in line with expectations. We remain committed to prudent balance sheet management strategies. We were also excited to announce our partnership with Village Bank which will meaningfully enhance our Richmond presence, which is core to our franchise future growth. Lastly, the recently released FDIC Deposit Market Share Report for 2024 continues to demonstrate the strength of our Main Street banking model and core deposit franchise, resulting in the #1 market share, or 30%, in our legacy Virginia Beach-Norfolk-Newport News, VA-NC MSA,” said G. Robert Aston, Jr., Executive Chairman.
• The company's stock gained around 32% over the past month and has a 52-week high of $36.67.
• RSI Value: 75.55                              
• TOWN Price Action: Shares of TowneBank gained 1.2% to close at $35.31 on Thursday.

Wisdomtree Inc WT

• On Oct. 25, WisdomTree posted upbeat quarterly results. “Our strong third-quarter results demonstrate how we are capitalizing on key secular growth trends, such as the expansion of our models business and our leadership in tokenization. As demand for efficient portfolio solutions continues to grow, we are broadening our reach in the advisor space while positioning ourselves at the forefront of blockchain-enabled finance. Platforms like WisdomTree Prime® and WisdomTree Connect™ are integral to our future growth strategy, offering innovative solutions that meet the evolving needs of both retail and institutional clients. We believe these initiatives will drive substantial long-term value for our stakeholders.”
• The company's stock gained around 12% over the past month and has a 52-week high of $12.14.
• RSI Value: 79.49
• WT Price Action: Shares of Wisdomtree gained 2.3% to close at $12.00 on Thursday.

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